Thank you to all the attendees and supporters of SFA’s 2nd Annual ESG in Structured Finance Symposium which took place this week on December 15-16. More than 200 participants gathered during our two-day virtual event to discuss a broad range of ESG-related topics, including impact and sustainable investing, and innovative ways that market participants can expand access to affordable credit and housing by funding responsible credit products to consumers and businesses.
On Monday, December 14, a panel of experts discussed the climate-related promises made by President-elect Biden during an event convened by the New York Times. One noteworthy topic addressed in the context of the financial industry was ESG disclosures.
With climate change remaining a prominent issue globally, many former U.S. housing officials are warning market participants that failing to address these issues could significantly damage the mortgage housing market enough to lead the U.S. into another recession - or worse.
The Structured Finance Association (SFA) today released the results of a market-wide survey on the extent environmental, social and governance (ESG) principles are incorporated within the $13 trillion structured finance market that provides capital to large segments of credit in the housing, credit card, automobile, corporate and other asset-backed borrowing markets.
Growing ESG in securitization: 81% of issuers incorporate ESG in their overall business operations, 73% within asset origination/underwriting practices, and 56% sponsoring or developing ESG-focused ABS/MBS programs. “Client Demand” is #1 factor motivating ESG for Institutional Investors in securitization. View the results and takeaways of SFA ESG Engagement survey.
For the first time ever, the Federal Reserve (Fed) formally indicated within their biannual financial stability report that climate change is a threat to the stability of the financial markets. Within the report, the Fed warned that weather related incidents, such as wildfires and storms, caused by the changing climate could “add a layer of economic uncertainty and risk” that the Fed has only begun to incorporate in their analysis.
SFA is proud to announce the official dates for our second annual ESG Symposium! Our 2020 ESG Symposium will be hosted virtually from December 15 – December 16 and will cover many important themes and developments across sustainable finance.
With the 2020 election less than one week away, Columbia Business School Professor Shivaram Rajgopal predicted what the future of Environmental, Social and Governance (ESG) investing could look like under a Biden administration.
The European Union’s (E.U.) first social bond offering saw approximately $275 billion in orders likely making it the largest demand for any bond offering. The issue was nearly 14 times oversubscribed highlighting the growing demand for Environmental, Social and Governance (ESG) bonds relative to their counterparts during the COVID-19 pandemic.
